Samsung's Q2 2016 Revenues Look Good Thanks to Galaxy S7

Today, Samsung Electronics revealed its financial results for the second quarter of the year ended June 30, and by the looks of it the company’s revenue for Q2 topped 50.94 trillion Korean Won (roughly $45 billion), while its operating profit throughout the same period of time clocked in at 8.14 trillion Won ($7.17 billion). This represents a year-on-year increase in revenue of 2.40 trillion Won ($2.13 billion), and an increase in operating profit of 1.24 trillion Won ($1.1 billion) year-on-year. According to the official data, the biggest contributor leading to these results was the company’s IT & Mobile Communications business.

The first quarter of 2016 was quite fruitful for Samsung Electronics, and the trend seems to be continuing in the second quarter too. According to Samsung, in Q2 2016 the IM business (IT & Mobile Communications) registered revenues of 26.56 trillion Won ($23.6 billion), down from last quarter’s 27.60 trillion Won revenues. The products that have contributed to this figure the most include the Samsung Galaxy S7 series, as well as the “streamlined mid-to-low-end smartphone lineup”. The semiconductor business saw an increase in revenues of 0.85 trillion Won compared to the first quarter of the year, and the display segment posted 6.42 trillion Won in revenue, up from 6.04 trillion Won in Q1. Overall, the company’s segments including Consumer Electronics, Device Solutions, Semiconductor, IM, and Display Panel have registered revenues of 50.94 trillion Won in Q2 2016, up from 49.78 trillion Won from the first quarter of the year.

As far as operating profits are concerned, Samsung Electronics registered 8.14 trillion Won ($7.4 billion) throughout Q2 2016, representing an increase of 1.46 trillion Won over Q1 2016. A more detailed view on how Samsung’s various divisions have performed reveals that the IT & Mobile Communications branch topped 4.32 trillion Won in operating profits up from 3.89 trillion Won in Q1, while the company’s semiconductor business registered operating profits of 2.64 trillion Won, up from 2.63 trillion Won in the first quarter of the year. Overall, Samsung Electronics’ quarterly operating profits in Q2 2016 are higher than they’ve been for the past eight quarters. Two years ago in Q2 2014, Samsung Electronics recorded operating profits of 7.19 trillion Won, and a quarter earlier the company topped 8.49 trillion Won. Assuming that the Korean tech giant will maintain its momentum in the upcoming two quarters, this should improve its chances to meet its quota of 350 million smartphone shipments throughout 2016.

Mihai has written for Androidheadlines since 2016 and is a Senior Writer for the site. Mihai has a background in arts and owned a couple of small businesses in the late 2000s, namely an interior design firm and a clothing manufacturing line. He dabbled with real-estate for a short while and worked as a tech news writer for several publications since 2011. He always had an appreciation for silicon-based technology and hopes it will contribute to a better humanity. Contact him at [email protected]